Mumbai: Canara Bank has informed the stock exchanges about the latest credit ratings assigned by ICRA on September 8, 2026. ICRA has reaffirmed the rating of the bank’s existing Basel III Tier I bonds at [ICRA]AA+ (Stable) and assigned the same rating to new Basel III Tier I bonds worth ₹4,500 crore.
ICRA has also reaffirmed the rating of Canara Bank’s Basel III Tier II bonds at [ICRA]AAA (Stable), while the rating for the bank’s Certificates of Deposit has been reaffirmed at ICRAA1+.
ICRA Rating Actions on Canara Bank Securities
The latest rating actions cover Canara Bank’s Basel III bonds and Certificates of Deposit.
Basel III Tier I Bonds
- Existing ₹11,000 crore: [ICRA]AA+ (Stable) – Reaffirmed
- New ₹4,500 crore: [ICRA]AA+ (Stable) – Assigned
Basel III Tier II Bonds
- ₹8,500 crore: [ICRA]AAA (Stable) – Reaffirmed
- Earlier ₹3,000 crore: [ICRA]AAA (Stable) – Reaffirmed and withdrawn following full redemption
Certificates of Deposit
- ₹20,000 crore: [ICRA]A1+ – Reaffirmed
Read also: Canara Bank Signs MoU with MCXCCL to Facilitate Electronic Fixed Deposit Receipts
Government Ownership and Strong Franchise Support Ratings
According to ICRA, the ratings continue to factor in Canara Bank’s sovereign ownership and strong franchise.
The Government of India held a 62.93% stake in Canara Bank as of June 30, 2026.
ICRA also noted that Canara Bank is:
- The fourth-largest public sector bank in India.
- The sixth-largest bank in India by total business.
- Supported by a robust deposit franchise.
- Backed by healthy liquidity and strong capitalisation.
- Showing improving profitability.
Canara Bank Financial Performance Remains Strong
The bank reported healthy financial and asset-quality indicators as of June 30, 2026.
Key financial parameters include:
- CET I Ratio: 12.91%
- Tier I Capital: 15.00%
- CRAR: 17.17%
- Gross NPA: 1.57%
- Net NPA: 0.36%
- Return on Assets (Q1 FY2027): 1.02%
The financial profile indicates adequate capitalisation and continued improvement in asset quality and profitability.
Stable Outlook for Canara Bank
ICRA has maintained a Stable outlook on the rated instruments. The outlook reflects the rating agency’s expectation that Canara Bank will continue to maintain:
- Stable asset quality
- Healthy profitability
- Adequate capital cushions
These factors are expected to support the bank’s overall credit profile.
Rating Rationale Submitted to Stock Exchanges
Canara Bank has submitted the detailed rating rationale issued by ICRA to the BSE and NSE under Regulation 30 of the SEBI Listing Regulations.
The disclosures provide details of the latest rating actions covering the bank’s Basel III Tier I and Tier II bonds as well as Certificates of Deposit.
About Canara Bank
Canara Bank is one of India’s leading public sector banks, offering a wide range of banking and financial services to individuals, businesses and institutions. The bank has a large nationwide franchise and provides services across retail banking, corporate banking, loans, deposits and other financial products.
Read also: Bank of India Gets ‘BBB’ Long-Term Credit Rating From S&P Global, Outlook Stable
